Bangladesh is in the process of securing significant external funding to ensure the supply of fuel and liquefied natural gas imports, as the new administration, led by Prime Minister Tarique Rahman, takes steps to stabilize the economy amidst a challenging global energy landscape following the conflict in Iran.
With a population of 175 million, the country heavily depends on imports to meet 95% of its energy requirements, prompting state-run entities to navigate the volatile energy market to meet the demand. Although the government has implemented fuel rationing measures, some restrictions were relaxed during the Eid al-Fitr festival.
Rashed Al Mahmud Titumir, the prime minister’s advisor on finance and planning, disclosed that Dhaka is engaged in discussions with prominent development financiers, including the Asian Development Bank, the World Bank, the International Islamic Trade Finance Corporation, and the Asian Infrastructure Investment Bank, to secure additional funding.
Titumir expressed optimism about receiving approximately $1.3 billion from the International Monetary Fund through an ongoing program, in addition to an extra $250 million to $500 million, on top of the roughly $500 million in budgetary aid from the ADB. He also mentioned that an IMF delegation was awaiting the formation of the elected government to disburse the funds earlier than scheduled.
Given the current turmoil in the Middle East affecting global energy markets, Titumir emphasized the critical need to maintain a stable financial flow for oil and energy without disruptions. He underscored the importance of diversifying energy sources and mentioned plans to explore procurement options from the United States, Southeast Asia, Nigeria, and Middle Eastern producers to reduce dependence on a single supplier.
Despite the surge in global energy prices, Bangladesh is committed to not passing on the cost burden to consumers. Titumir affirmed that the government intends to ensure economic stability through adequate financing, relying primarily on multilateral assistance rather than private sector loans.
Bangladesh routinely adjusts government-regulated fuel prices on a monthly basis, adhering to a global pricing mechanism.
